BIMB targets return on equity of 16% for 2012

KUALA LUMPUR (Dec 9): BIMB HOLDINGS BHD [] targets to achieve return on equity of 16% for the banking group under its headline key performance indicators for the financial year ending Dec 31, 2012.

In a statement issued to Bursa Malaysia on Friday, BIMB said it was targeting return on assets of 1.5% for FY2012.

“These headline KPIs targets have been set and agreed by the board and management of BIMB group as part of a broader KPIs framework that the group has in place. The headline KPIs targets have been arrived at based on the targeted consolidated financial results of the group for FY2012,” it said.

On the outlook for the banking and financial services sector, BIMB said the uncertainties in the macro economic conditions were expected to be challenging which may affect the sector going forward.

The headline KPIs set by the group reflected its main corporate targets in pursuing sustainable financial results, it said.

BIMB said the announcement of headline KPI targets were under the government-linked companies’ transformation programme which were disclosed on a voluntary basis. However, it said the targets should not be construed as forecasts, projections or estimates of the group or representations of any future performance.



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Asian market extend losses on EU summit uncertainties

KUALA LUMPUR (Dec 9): The FBM KLCI fell 0.98% at the mid-day break on Friday as losses at key Asian markets widened on increasing concern that European policy makers would not be able to formulate concrete plans to solve the eurozone debt crisis.

The FBM KLCI fell 14.58 points to 1,458.44, weighed by losses at blue chips including Genting, Petronas Dagangan and KLK.

Market breadth was negative with losers beating gainers by 471 to 136, while 237 counters traded unchanged. Volume was 727.43 million shares valued at RM485.12 million.

The ringgit weakened 0.70% to 3.1540 versus the US dollar; crude palm oil futures for the third month delivery fell RM2 per tonne to RM3,085, crude oil slipped 20 cents per barrel to US$98.14 whole gold gained US$1.38 an ounce to US$1,709.75.

Losses at regional markets accelerated after EU diplomats said it had been agreed that a new permanent bailout fund would not have a banking licence, meaning it would not be able to borrow from the European Central Bank (ECB), according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index lost 2.63% to 18,605.92, Japan’s Nikkei 225 fell 1.63% to 8,522.98, South Korea’s Kospi was down 2.04% to 1,873.33, Singapore’s Straits Times Index lost 1.15% to 2,696.90, Taiwan’s Taiex fell 1% to 6,913.13 and the Shanghai Composite Index shed 0.63% to 2,315.24.

On Bursa Malaysia, KLK was the top loser this morning and fell 70 sen to RM22.30; Nestle was down 30 sen to RM53.80, BAT and Petronas Dagangan down 28 sen each to RM47.12 and RM16.90, Genting 26 sen to RM10.62, BLD PLANTATION []s 25 sen to RM7.05, HLFG 24 sen to RM11.26, PPB 22 sen to RM16.28, MISC 18 sen to RM5.77 and AMMB down 17 sen to RM5.73.

Compugates was the most actively traded counter with 61.5 million shares done. The stock was unchanged at 7 sen.

Other actives included Versatile, SYF Resources, DPS Resources, Pavilion REIT, Takaso, Utopia and LFE Corp.

Gainers this morning included Dutch Lady, Cycle & Carriage, Aeon, F&N, Riverview, Kretam and Asas.



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Celcom Axiata plans another RM1b capex for 3G infra

KUALA LUMPUR (Dec 9): Celcom Axiata Bhd, which invested RM1 billion in the 3G infrastructure this year and plans to spend another RM1 billion next year.

Its chief financial offer Chari TVT said on Friday the network was long term evolution (LTE) capable for upgrading. (LTE is a standard for wireless communication of high-speed data for mobile phones and data terminals.)

When asked about plans by Broadcast Australia to ink a deal on Monday to be Celcom’s technical partner to bid for the RM2 billion digital terrestrial television broadcasting (DTTB) project, Chari declined to comment.

He said the details of the deal would be announced on Monday but said that Celcom would ultimately be providing infrastructure for the (DTTB) network and rent it out for stable income in the future.

On the financial performance for the third quarter ended Sept 30, 2011, Chari said Celcom posted record profits and revenue. Its profit after tax and minority interests had grown 10% on-year to RM531million and revenue by 6% to RM1.826 billion.



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Sime to expand oil, fats biz in S. Africa

JOHANNESBURG (Dec 9): Sime Darby Group plans to further expand its oil and fats business in South Africa with the setting up of a packaging facility and another refinery in the future.

Its South Africa unit, Sime Darby Hudson & Knight (Pty) Ltd, was expected to set up the packaging facility, a company official said.

The official said this at a briefing for Minister of PLANTATION [] Industries and Commodities, Tan Sri Bernard Dompok, and his delegation during a visit to the refinery in Boksburg on Thursday.

The official said the expansion, which started with the packaging facility, was in the final preparation stage as the group found new marketing opportunities for its products in neighbouring territories and countries.

"The new refinery will come in later when demand has increased sufficiently," he said.

The Sime Darby Hudson & Knight refinery has a capacity for 160,000 tonnes with about 80 per cent utilisation. About half of the refinery output is for Unilever.

Sime Darby group is a major investor in the oil and fats business in Africa.

Apart from the refinery, it is also currently involved in setting up plantations in Liberia. - Bernama



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Gamuda dips on being removed from KLCI

KUALA LUMPUR (Dec 9): GAMUDA BHD [], which would be leaving the FBM KLCI index following the semi-annual review of the FTSE Bursa Malaysia Index Series on Thursday, declined in late morning trade on Friday.

The decline in Gamuda’s shares was also in line with the weaker broader market.

At 11.56am, Gamuda fell 17 sen to RM3.11 with 915,500 shares traded.

OSK Research in a note Dec 9 said the removal of Gamuda from the FBM KLCI removed the CONSTRUCTION [] sector representation.

FTSE Group (FTSE) and BURSA MALAYSIA BHD [] yesterday said the constituent changes take effect at the start of business on Dec 19, 2011 and the next review will take place on June 7, 2012.

The FBM KLCI lost 1.02% or 15.08 points to 1,457.84.



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KLCI in red on profit taking, weaker regional sentiment

KUALA LUMPUR (Dec 9): The FBM KLCI looked poised to extend its losses on Friday on profit taking ahead of the weekend as Wall Street and European markets fell overnight on heightened worries over the Eurozone debt crisis.

The FBM KLCI fell 11.34 points to 1,461.58 at 10am, weighed by losses at blue chips.

Losers outnumbered gainers by 306 to 97, while 185 counters traded unchanged. Volume was 331.08 million shares valued at RM196.19 million.

Asian shares and commodities fell on Friday, while the euro remained under pressure, on growing doubts that European leaders could forge a credible plan to solve the euro zone's debt crisis at a summit later in the day, according to Reuters.

European Union leaders looked set to adopt a new system of fiscal discipline, but sentiment worsened after the European Central Bank dashed hopes that it would serve as lender of last resort and as Germany rejected a long-term goal of issuing common euro zone bonds, it said.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.85% to 18,753.93, Japan’s Nikkei 225 fell 1.65% to 8,521.73, South Korea’s Kospi was down 1.55% to 1,882.72, Taiwan’s Taiex lost 1.32% to 6,891.04, Singapore’s Straits Times Index fell 0.91% to 2,703.39 and the Shanghai Composite Index shed 0.38% to 2,320.96.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Dec 9 said the FBM KLCI fell by 10.07-points to close at 1,472.92 on Thursday on profit taking.

“Its resistance areas of 1,472 and 1,500 will cap market gains, whilst the weaker support areas may be located at 1,450 and 1,469.

“Due to the US markets’ poorer tone last night, we will have a volatile day for the local index today with broad pre-weekend profit taking and liquidation,” he said.

On Bursa Malaysia, KLK was the top loser at mid-morning and fell 70 sen to RM22.30; Petronas Dagangan lost 36 sen to RM16.82, HLFG 24 sen to RM11.26, PPB 22 sen to RM16.28, BAT 20 sen to RM47.20, Genting 18 sen to RM10.70, MISC 16 sen to RM5.79, AMMB 15 sen to RM5.75, Petronas Gas 14 sen to RM13.70 and Gamuda 13 sen to RM3.15.

Compugates was the most actively traded counter with 35.6 million shares done. The stock fell half a sen to 6.5 sen.

Other actives included Versatile, Pavilion REIT, LFE Corp, SYF Resources, DPS Resources and Takaso.

The gainers included Dutch Lady, JT International, Cycle & Carriage, Harvest Court, Quill Capita and LFE Corp.



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KL shares start on bearish note

KUALA LUMPUR: Amid the sluggish market condition, share prices on Bursa Malaysia started trading Friday on a bearish note, with heavy selling seen in selected bluechips and low-liners, dealers said.

The global markets were on a downtrend further as the European Central Bank squelched hopes for increased bond purchases ahead of the European Union Leaders' Summit which is expected to come out with an aggressive plan to contain the region's debt crisis.

Thirty mminutes after the opening, the FTSE Bursa Malaysia (FBM KLCI) lost 10.42 points to 1,462.5, with losses mostly seen in Petronas Dagangan and Kuala Lumpur Kepong.

Earlier, the benchmark index opened 8.22 points lower at 1,464.7.

China's key inflation data to be out this week also contributed to the local bourse's sentiments today, dealers said.

The Finance Index plunged 100.141 points to 12,962.02, the Plantation Index dipped 56.64 points to 7,872.47 and the Industrial Index slipped 20.95 points to 2,650.42.

The FBM Emas Index dwindled 62.25 points to 10,020.26, the FBM Mid 70 Index was 54.71 points lower at 10,936.91 and the FBM ACE Index fell 34.18 points to 4,198.25.

Decliners led advancers 220 to 65 while 160 counters were unchanged, 1,033 untraded and 19 others were suspended.

Turnover stood at 201.474 million shares worth RM125.931 million.

Actives, Compugates inched down half-a-sen to 6.5 sen, Versatile Creative was flat at 44 sen, SYF Res-WA gained 2.5 sen to 53 sen and Wijaya Bari-WA added half-a-sen to 37.5 sen.

For heavyweights, Maybank lost five sen to RM8.16, Sime Darby and CIMB shed four sen each to RM8.90 and RM6.95, respectively, while Petronas Chemicals slipped three sen to RM6.06. - Bernama



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Kurnia Asia stock set to rally: Analyst

Kurnia Asia Bhd, a Malaysian insurer, rose to a one-month high in Kuala Lumpur trading as Hong Leong Financial Group Bhd said its stock price is poised to rally.

Prices should test between 59 sen and 67 sen due to speculation that it has found a buyer for its Kurnia Insurans (M) Bhd. unit, Hong Leong analyst Low Yee Huap wrote in a report today.

The stock climbed 1 percent to 50 sen at 9:25 a.m., set for its highest close since Nov. 4. -- Bloomberg



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